Know your rights as a service member Published April 14, 2011 By Capt. Stuart Anderson 90th Missile Wing Assistant Staff Judge Advocate F. E. WARREN AIR FORCE BASE, Wyo. -- The decision to serve in the U.S. military often leads to changes in a person's paycheck and lifestyle. With the economic slump, many people are having trouble keeping up with monthly payments. As active-duty service members, there are powerful protections against the economic risks members took when choosing to serve. In particular, federal law protects Airmen from the changes in income and circumstances which come with the transition to active duty. In a national economy of falling home values, protections against foreclosure and high mortgage interest have gained special importance. The truth is, banks and mortgage companies may not know the law or may not follow it; this does not mean service members lose rights. Anyone having problems paying debts or worried about foreclosure, contact Air Force Global Strike Command's 90th Missile Wing Legal Office for help. Legal-assistance attorneys can identify member's rights and help protect against bad choices. In 2010, Congress passed, and the President signed into law, amendments to the Servicemembers Civil Relief Act. These amendments extended and clarified many protections for active-duty military, including protections regarding what are called "pre-service obligations." These "pre-service obligations" are simply contracts or debts begun before an individual started active duty. If the changeover to military life has materially affected an Airman's ability to pay, SCRA will cap the interest owed on a pre-service obligation at 6 percent. This applies to mortgages like any other debt, but the protection for mortgages does not stop there. For up to nine months after the end of active duty, the mortgage company or bank cannot foreclose on a pre-service mortgage without a court order. Requiring a court order means a judge will review the foreclosure, while most states, including Wyoming and Colorado, allow foreclosure auctions without a hearing by a judge. SCRA gives judges the power to implement a wide range of possible solutions to an Airman's mortgage problem short of foreclosure. SCRA allows a judge to stop or greatly reduce payments and to stop foreclosure and collection efforts for the duration of active-duty and an additional time equal to active duty service. This is not a loan forgiveness; all of the debt has to be paid, but the schedule of payment cannot be modified, and the lender cannot charge a fine or penalty. While Congress amended SCRA in 2010, there is a long history of this kind of protection for service members. Yet, despite that history and the recent congressional attention, service members have had SCRA rights violated in foreclosure proceedings around the country. The New York Times has run a story about a class-action lawsuit by service members against a national mortgage company for violation of the SCRA mortgage protections. That case led to congressional hearings on the question and a settlement by the bank that includes not only payment for the harm but a change of their foreclosure procedures. The New York Times has also reported a case of SCRA litigation against a subsidiary of Deutches Bank on behalf of an Army National Guardsman. The takeaway from these stories is that Airmen have to demand SCRA protections: even a national bank may not know about them, may make mistakes, or, worse, may not care. But Airmen do not have to do this alone. The 90th MW Legal Office is primed and ready to help, and the SCRA protections are a powerful asset. Warren Airmen do not have to rely on legal advice from lenders or the word on the street. The legal assistance attorneys at the 90th MW Legal Office can evaluate each situation to see how SCRA can help. Many other kinds of contracts and debts fall under SCRA, so anyone having troubles making payments, especially those from pre-service obligations, should bring those contracts to the 90th MW Legal Office. Early action is best, so it is encouraged to make a legal assistance appointment as soon as a problem is foreseen.